Notice u/s 143(2) issued beyond period of Statutory Limitation, is invalid: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT), Delhi bench consisting of Saktijit Dey, Judicial Member and Pradip Kumar Kedia, Accountant Member held that notice u/s 143(2) issued beyond the period of limitation prescribed in the statute, is an invalid notice.

The assessee, Uttam Enterprises Pvt. Ltd is a resident company. A search and seizure operation under Section 132A of the Act was conducted based on the information received in course of the search and seizure operation, and assessment proceedings, purportedly, under Section 153A read with section 143(3) of the Act were initiated against the assessee. The Assessing Officer (AO) completed the assessment making couple of additions. The assessment order so passed was challenged in appeal before the Commissioner. The Commissioner granted partial relief by deleting the addition of Rs.19,98,832. Aggrieved by the order of the Commissioner the assessee preferred appeal before the Tribunal.

The Counsel for the assessee, Arun Kishore submitted that section 143(2) read with its proviso, any notice issued under Section 143(2) has to be served on the assessee within a period of six months from the end of the financial year, wherein, the return of income under Section 139 or in response to notices issued under Section 142(2)(1) of the Act was filed on 30.09.2013. Therefore, as per the limitation prescribed under the proviso to section 143(2) of the Act, the assessing officer should have served the notice under Section 143(2) of the Act on or before 30th September 2014. Whereas, the assessing officer has issued the notice under Section 143(2) of the Act on 13th October, 2014. Thus, he submitted, that the notice under Section 143(2) of the Act having been issued beyond the period of limitation prescribed in the statute, is an invalid notice. Therefore, the assessment order passed based on such invalid notice is unsustainable.

The Tribunal observed that “the notice issued under Section 143(2) of the Act in the instant case is beyond the period of limitation prescribed in the statute, hence, is an invalid notice”.

To Read the full text of the Order CLICK HERE

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